Budget and business plan 2010/13

Report: 7
Date: 26 November 2009
By: Director of Resources on behalf of the Commissioner and MPA Acting Treasurer

Summary

This report sets out the proposed draft Budget and Business Plan 2010-13 and supporting financial information. This submission also provides a statement on the robustness of the estimates by the Authority’s Acting Treasurer, and a copy of the Mayor’s letter of consultation regarding the preparation of the draft component budget for 2010/11 with the Authority’s response. Members are asked to approve the plan and supporting information, which will then be submitted to the Mayor in accordance with his budget guidance.

A. Recommendations

That members

1. Note the draft Budget and Business Plan 2010-13 (Appendix 1) and supporting financial information (Appendix 2).
2. Note the statement by the Acting MPA Treasurer (the Chief Finance Officer under the Local Government Act 2003) on the robustness of the estimates made for the purposes of the calculations and the adequacy of the proposed financial reserves (Appendix 3).
3. Note the 2010/11 Budget for Greater London Authority and Functional Bodies Preparation of Draft Component Budget letter and the Authority’s response to the Mayor (Appendix 4).
4. Approve the draft Budget and Business Plan 2010-13 and supporting financial information for submission to the Mayor as per his budget guidance.

B. Supporting information

Budget and Business Plan

1. This report provides members with an opportunity to comment on the draft Budget and Business Plan 2010-13 (Appendix 1) and the Supporting Financial Information (Appendix 2), and to approve these for submission to the Mayor. The draft Policing London Business Plan and Budget 2010-13 will be submitted to the Authority for final approval in February 2010 following the Mayor’s announcement of the overall budget for the Authority.

2. A supplementary report will be circulated to members following the SOP/F&R committee on 19 November 2009 to reflect the comments and recommendations of the joint committee in respect of the 2010-13 draft budget and business plan.

GLA budget guidance

3. Appendices 1 and 2 fulfil the requirement of the GLA Group Budget Guidance for 2010/11, requiring the MPA/MPS to produce a business and supporting budget plan that:

• Covers at least the period to 2012/13
• Sets out what is planned to be achieved in high-level terms over that period, specifying profiled deliverables and defining measures to assess progress and impact
• Highlights in high-level terms plans towards delivering carbon reductions
• Demonstrates how the budgets and business plans will increase diversity within the workforce
• Includes updated budget estimates and borrowing and capital spending plans covering the plan period
• Includes an assessment and explanation of the quantified financial benefits expected to be secured by joint working across the GLA group.

Comments on the Mayor’s preliminary draft proposals are due by 27 November, along with completed business plans that are consistent with the Mayor’s draft budget proposals and any significant matters that might be raised in the response.

4. In doing this, the MPA/MPS have taken into account the Mayor’s priority areas:

• Promoting safety and personal wellbeing by reducing crime and the fear of crime so that all Londoners feel safe and confident in policing, including:
  •  Improving opportunities for young Londoners and reducing youth crime
  • Addressing violence against women, notably sexual and domestic violence
  • Tackling gang, gun and knife crime through intelligence-led activity
  • Providing a visible and proactive presence on the transport network
  • Protecting Londoners by reducing the risk presented by terrorism
• Improving housing and the living environment, including The London Plan and climate change adaptation and mitigation, particularly carbon reduction
• Building economy and opportunity for all, implementing the Living Wage for London, promoting equality and supporting the successful delivery and legacy of the London 2012 Olympic and Paralympic Games
• Cleaner, greener, more efficient and accessible transport and technology, including safer road transport and sustainable transport
• Delivering value for money and better quality of life for all Londoners, prioritizing resources to key objectives and using resources more effectively through joint working across the GLA group.

Budget and Business Plan 2010-13

5. The draft Business Plan has three main purposes:

• To set out how the corporate objectives will be delivered over the next three years, and the way in which MPS business groups will contribute to their achievement
•  To present to the public and other stakeholders how the Policing London Business Plan will improve service delivery to Londoners, meet their needs and demonstrate that tax payers’ money is being appropriately spent
•  To ensure the content of the plan meets the requirements of the business plan submission to the Mayor as outlined in the GLA Budget Guidance.

6. The draft Plan 2010-13 at Appendix 1 has been developed in five broad sections:

Section 1 is the MPA section outlining MPA functions and priorities as reflected in Met Forward and the MPA Budget

Section 2 outlines the major influences that the MPS consider when setting its direction of travel (Strategic Outcomes and Corporate Objectives) for the next three years and beyond, and in determining the key areas to tackle this year

Section 3 outlines what the MPS aims to achieve for London and our Communities, the Commissioner’s approach to achieving these outcomes through corporate objectives and standards of service delivery, and the resources available to the Service

Section 4 outlines the part played by MPS Business Groups in delivering on Corporate Objectives and sets out how resources are allocated across each

Section 5 outlines the performance framework against which the MPS is accountable, the approach to managing performance in the MPS, and details key performance indicators for 2010/11

In order to keep the Plan as compact as possible, there are no Appendices.

7. Appendix 2 provides the supporting financial information to the draft Budget and Business Plan required to meet the Mayor’s budget guidance requirements.

8. This draft Budget and Business Plan 2010-13 has been built over the past eight months in a way that has put engagement at the heart of the process, including over 110 meetings with decision makers and subject experts in the MPA and MPS, 72 in the three months August - October.

9. Ongoing consultation with the MPA includes bi-weekly planning meetings and monthly budget meetings, one-to-one briefings, Business Group scrutiny sessions and MPA committees. The Interim Budget Submission was approved by MPA Full Authority on 24 September 2009.

Strategy

10. A summary of Met Forward, the Authority’s strategic priorities, is set out at the front of the plan.

11. The Commissioner has determined three key outcomes for policing London. The focus is on public Safety and Confidence, cutting and solving crime, securing our streets, convincing all our communities that we are on their side, delivering the policing communities want and being intolerant of violence. To achieve this we must deliver the right service at the right price, through Improvement.

12. How the Service will deliver is reflected in our values as represented by the Commissioner’s 5 Ps:

• Presence – the presence of our officers in our communities
•  Performance – in improving public safety and confidence
•  Productivity – in the effective and efficient use of our resources
• Professionalism - in taking personal responsibility for our actions
•  Pride – in our policing, in our uniform, and in our service delivery.

13. The Budget and Business Plan 2010-13, and the published Policing Plan that follows in January-February 2010, underscore individual Business Group plans but take a broader perspective for the Authority and Service. They also reflect overall Revenue and Capital budgets and use of resources.

14. The service’s corporate objectives have been drafted with due attention to public priorities, Home Office strategy, the Mayor’s priorities, Metforward and legislative requirements.

15. There is more work to do in detailing the MPS’ cross-cutting and collaborative work to deliver on each of these corporate objectives. This will be reflected in the final version of the Policing London Business Plan 2010-13 which will be submitted for consideration in February 2010.

Performance Management

16. Greater emphasis has been placed on explaining our Performance Framework, and on managing performance at the MPS. This is supplemented by the draft proposed indicators for 2010/11. All indicators have been proposed in consultation with senior MPS leads and with MPA officers, and reviewed through a specialist performance indicator forum, including MPA representation.

17. In line with these comments and MPS Management Board’s request for a tighter indicator set for 2010/11, 10 draft headline key performance indicators (KPI) are proposed (against 19 for 2009/10), supported by a broader set of 22 draft operational and corporate health indicators (against 116 for 2009/10). These are grouped into eight performance areas, shaded grey in the Plan (p67-69). The draft set of KPIs aligned to these, with proposed headline KPIs in BOLD FONT, are in development.

18. There is more work to do in finalising this proposed indicator set, and in aligning it with the set to be used for monthly reporting on Confidence and Safety. This work will continue through to early February 2010.

19. There are no targets for 2010/11 in this Plan. Target setting is in process but is materially affected by changes in the environment and by scoping of detailed deliverables at Business Group level. The TP Variable Target Setting (VTS) process is underway, with Borough target setting meetings scheduled for January 2010. Targets remain subject to final mediation through year end outturn data.

Financial Information

20. The supporting financial information highlights the issues facing the MPA/MPS which are expected to impact on next year’s budget and the medium term financial forecasts. This summary is complementary to the budget and corporate objectives set out in the Budget and Business Plan 2010-13, and provides a more detailed commentary on the information provided in that document. The MPA Treasurer, under the remit of the Chief Finance Officer in accordance with the Local Government Act 2003, has provided a statement on the robustness of the estimates made for the purpose of the calculations and the adequacy of the proposed financial reserves (Appendix 3).

21. It should be noted that whilst the information provided is based on best estimates, many uncertainties still remain which may impact on the MPA final budget and precept requirement for 2010/11 including: funding from government, the GLA and third parties; the delivery of significant savings; and unplanned events.

22. Within that context, this report is the MPA/MPS submission in accordance with the requirements of the GLA group 2010/11 budget and business plan process. As part of this process, and on the basis of the Authority’s interim budget submission, a consultation letter (Appendix 4) has been received from the Mayor as part of the preparation of his draft component budget. The proposed component reflects the guidance given to the Authority in July 2009. The budget submission and supporting information provide the basis of the Authority’s response to the Mayor’s consultation. The Authority’s formal response is being prepared and will be circulated prior to the Full Authority meeting.

23. Financial statements have been updated following savings and growth submissions. In overall terms, the budget gap has been closed for 2010/11, although a gap remains for 2011/12 and for 2012/13 against the Mayor’s guideline budget limits. Work is underway, through the Service Improvement Plan process, to close those future budget shortfalls.

24. Police Officer and Police Staff establishment statements have been updated for the MPA and across all MPS Business Groups, following clarification of the officer and staff deployment plan.

Next steps

25. The draft Budget and Business Plan 2010-13 and Supporting Financial Information will, subject to approval at this Full Authority, be submitted to the Mayor on 27 November 2009. The timetable for the production of the Policing London Business Plan 2010-13 is set out in Appendix 5.

26. The iterative process of drafting and producing the final public version of the Policing London Business Plan will continue through to February 2010. It will be presented for approval to MPA Full Authority on 25 February 2010. The Plan will be published electronically on 29 March 2010 - there are no plans to publish a hard copy (disabilities and reasonable requests excepted).

27. A summary version of the Policing London Business Plan 2010-13, and a 4 page executive brief will be produced during February 2010.

C. Race and equality impact

1. As part of the ongoing development of the Policing London Business Plan and Business Group business plans, equality, diversity, social inclusion and sustainable development activity will be further aligned going forwards.

2. Strategic leads will complete an Equalities Impact Assessment (EIA) where required. In addition, work is ongoing with business groups and the Diversity and Citizen Focus Directorate to ensure that EIAs are fully integrated into the business planning process.

D. Financial implications

The budget envelope for the MPA will not be known until February 2010. The Policing Plan considered by MPS Management Board and the MPA in February will reflect the budget limit agreed by the Mayor and actions required to deal with financial issues which have emerged since this budget submission was made.

E. Legal implications

1. The Greater London Authority Act 1999, as amended, sets out the requirements of the GLA to calculate the budget requirements for the Mayor and the Assembly and four functional bodies. The budget requirement for each body is calculated by determining the difference between projected expenditure and projected income including specific Government grants. In order for the GLA to estimate the sums required by the MPA/MPS, the MPA/MPS must provide information to the Mayor and Assembly to facilitate this. The Mayor is required to consult with the MPA/MPS prior to setting the final budget.

2. To help assist budget setting and fulfil meeting the priorities within the Policing Plan, the budget and business development process is a key element to ensure there are sound financial plans within which the MPA/MPS priorities and objectives are adequately funded.

3. Expenditure or activities undertaken by the MPA/MPS as statutory bodies must only budget for activities that fall within its statutory powers. There are also positive duties under S3 Local Government Act 1999 to secure the continuous improvement in the ways functions are exercised having regard to a combination of the economy, efficiency and effectiveness. This report identifies steps under the budget and business plan process will be taken to ensure best value is achieved in the delivery of policing services.

4. The Local Government & Public Involvement in Health Act 2007 confers a duty on named public sector agencies to co-operate with the local authority to agree LAA targets and then to have regard to the targets they have agreed. The Act further confers a duty to involve local representatives - Police Authorities are exempt from this duty as they are already covered by similar provisions in Section 96 of the Police Act 1996, and Section 157 the Serious Organised Crime and Police Act 2005. There are implications around consultation and engagement in the Local Government & Public Involvement in Health Act 2007. There are no other evident legal implications.

F. Environmental impact

The Budget and Business Plan 2010-13 references the MPS’ Corporate Social Responsibility (CSR) Strategy for 2010-13 and the 2009/10 Environment Report, which detail the MPS’ work to improve the quality of life for Londoners and our employees and to drive the sustainable consumption of resources.

G. Background papers

• Business Group submissions
• Mayor’s 2010/11 Budget Guidance (July 2009)
• Interim 2010-13 Budget Submission

H. Contact details

Report author(s): Paul Clarke, Strategy and Improvement, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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